Your Brand Equals Higher Profits
Friday, May 23rd, 2014
It's proven. Strong brands drive higher profits.
In fact, most of the value of some of the biggest corporations in the world are their brand, not their buildings or the equipment. 70% of the value of McDonald's and 51% of the value of Coca-Cola is in their brands!
Taking all brands into consideration, the average branded product is priced 35% higher than the generic options. Imagine what a 35% bump in sales prices would do to your margins.
Brands are clearly worth the effort and expense they require to establish and maintain. You don't have to advertise on the level of Coke or McDonald's to create a brand, but you do have to create and execute a brand strategy.
Branding has changed tremendously over the past 15 years. In the past, most people believed what they saw on TV or read in the newspaper. If we recognized its logo or slogan, we felt a sense of security in knowing that that product would deliver what it said it would. Today, we live in a more skeptical society. With the advent of smart phones, tablets and our constant connectedness to the web, consumers now have access to make more knowledgeable decisions in regards to the products they buy. Just the existence of online reviews has dramatically changed how people do business. With the information so easy to access, why wouldn't you check a brand out before buying?
To establish and maintain a brand today it takes much more than a pretty logo and advertising (though a consistent look to your brand is very helpful). Today your brand emerges from user experiences and is broadcast by everyone that interacts with your brands to all of their friends and families.
How do your customers experience your brand? They experience your brand every time they use your product or service and whenever they come into contact with your employees or anyone that uses your brand. They experience it via your website, social media channels and through your marketing. Fading are the days in which your competitors can out advertise you and fool your customers into leaving you. If you build or deliver a quality brand or product and stand behind it, the transparency in today's marketplace will be your best friend.
If the transparency in today's marketplace scares you just a little (and it should), stay with us over the next few weeks as we show you how to create and deliver a consistent brand strategy. We'll be dedicating the next few weeks of our Friday blog posts to the connection between values, cultures, brands and profits.